Target Teams With Facebook, Launches Digital Deals App ‘Cartwheel’

May 9, 2013

Target just teamed with Facebook to launch Cartwheel, a new digital savings program. Beginning on Wednesday, Target is offering 700 new deals “with a social twist” — every time a user claims a deal, an automatic post is generated in their Newsfeed on Facebook. Consumers can find and share deals with friends on the social network, as well as redeem offers in store.

Marketed as “a whole new spin on saving,” Cartwheel is expected to eventually include around 1,000 deals; for now, the deals (available only in the U.S.) give consumers a percentage off and can only be redeemed in store.

Target began working with Facebook over a year ago, seeking a way “to integrate and have a savings program with a social element,” said Eddie Baeb, spokesman for Target. Baeb told AdAge that “We’re focused on combining digital technology with the in-store experience to bridge those worlds.”

While the campaign doesn’t target any specific demographic, the goal is to increase foot traffic to stores.

How does Cartwheel work? Consumers must have a Facebook account to access the deals site, and can begin by adding 10 deals from several different ‘Collections’ (groupings of offers around a specific theme) or by searching different categories. Deals generally last for a month, and can be used 4X per transaction and multiple times throughout the month; they can also be used in addition to other offers/coupons.

All of a user’s deals are stored in a single unique barcode, which can be updated in realtime (and, of course, while shopping). Barcodes are scanned at checkout; Cartwheel apps for Android and iOS are expected this summer. According to AdAge, the Cartwheel site “is Target’s first responsive site and works seamlessly on mobile devices.”

Users can see deals their friends add or redeem, and can earn badges for building lists, redeeming offers, or having friends join. Multiple activities are grouped together, so redeeming ten deals will show up as one Facebook post on a user’s Newsfeed, featuring the brands purchased. The sharing function on Cartwheel can also be turned off for those who don’t want friends to know what deals they’ve redeemed; certain items are automatically kept private, including personal care products and underwear.

So far, Cartwheel is being promoted through paid Facebook ads and Target’s media channels. The retail brand will be “watching closely” to see how consumers engage with the deals site, and how often they come back.